Lehigh County Zoo subsidy still uncertain

County Executive Matt Croslis has sketched out a new funding formula for the Lehigh County Zoo that would tie the nonprofit's annual subsidy to its cash assets.

The proposed agreement represents Croslis' first attempt at striking an agreement between the county and the zoo, but the third proposal so far this year.

County commissioners had argued previous plans wouldn't wean the zoo off county assistance or encourage improved performance. This time around, their concerns centered on a financial marker the zoo suggested be the basis for its subsidy.

The first proposal, made in April under former Executive Bill Hansell's administration, requested $185,000 a year to support the zoo. A second proposal offered a diminishing subsidy, with the county contributing $185,000 in 2014, $170,000 in 2015 and $155,000 in 2016.

The new six-year proposed agreement is tied to the six years remaining on the Lehigh County Zoological Society's lease of the land for $1 per year.

Croslis' proposal includes a $185,000 subsidy in 2014, 2015 and 2016 that drops again to $150,000 for 2017 through 2019. Each of those amounts can be reduced further by $35,000 if the zoo's financial picture improves.

"That's a drastic cutback from where the zoo has once been," Lehigh County Director of Administration Tom Muller said.

The subsidy decreased from $420,000 in 2005, when the zoological society took over the zoo from the county, to $270,000 before peaking at $595,000 in 2009. The past four years the county has paid $245,000.

The proposed 2014 subsidy represents about a 25 percent cut from 2013, and funding is at an all-time low.

It's unclear whether the third iteration of the funding plan stands any better chance than its predecessors as commissioners questioned whether cash balances were the best indicator of the zoo's financial health.

Under that plan, the subsidy would be based on the cash assets on the zoo's balance sheet, which is about $600,000, though much is designated for debt, accounts payable and capital investments.

Commissioner Scott Ott cautioned against a system that would incentivize the zoo to burn through its cash balance. He also questioned whether this plan put the zoo on a path to independence.

"Have we completely thrown out the idea that the zoo is ever going to stand on its own?" he said.

Commissioner Percy Dougherty suggested the subsidy should actually be much larger, and worried that reducing it could put the zoo in jeopardy.

"There are only so many people who are going to visit out there as a paid admission," Dougherty said. "I'm hoping we're not too optimistic here going forward."

The county would also pay the zoo $92,500 to care for county-owned animals.